Noem asks Vanguard, Congress for support as state divests from Chinese companies

Gov. Kristi Noem says the South Dakota Investment Council is no longer investing any internally-managed funds in Chinese companies, but has asked investment company Vanguard for help in pushing that goal forward.

Noem had called for a review of the SDIC's portfolio earlier this month, stating that she wanted to determine if taxpayer dollars were being invested in companies that "pose a threat to our national security."

More:Gov. Kristi Noem calls for review of South Dakota's investments linked to China

In a press release sent out on Wednesday afternoon, Noem said the review showed that the council had already divested from three Chinese companies, leaving no internally-managed funds invested with Chinese companies.

But she added that the review also showed that approximately 1.3% of the SDIC's portfolio was invested in Chinese companies through an emerging markets index, with another 0.7% invested in Chinese real estate through a combination of external real estate and private equity partnership funds.

More:Gov. Kristi Noem issues executive order blocking TikTok from state devices

In a letter to Vanguard CEO Mortimer Buckley dated Dec. 21, Noem wrote that she was "concerned with the looming threat of the Chinese Communist Party" and requested that the company create an emerging markets fund that does not include China.

The letter also noted Noem's recent efforts to propose legislation that would restrict the foreign purchase of agricultural land within the state, as well as her executive order that blocked the use of TikTok on state-owned and state-leased devices. Noem has cited concerns regarding China as reasons for both of the actions.

More:Noem, two legislators draft bill to limit foreign purchases of South Dakota agricultural land

Noem also wrote to Congressional leaders in a letter that asked them to pass legislation that would endorse state efforts to divest from investments in Chinese companies.

"If Congress were to take this step, it would send a clear sign to China that their activities are not supported by the United States of America," Noem wrote. "It would give states the opportunity to follow South Dakota's lead and explore options to divest from a nation that hates us. And it would be the right thing to do for the American people."

This article originally appeared on Sioux Falls Argus Leader: Noem wants to further divest South Dakota from Chinese companies